Risk management
Take-profit
A take-profit is an order that automatically closes your position when the price hits your profit target.
A take-profit is an order that automatically closes your position when the price hits your profit target.
It is the counterpart of the stop-loss, on the profit side: it locks in your gain without you having to watch the screen. Setting your take-profit in advance helps you avoid getting greedy and stick to your plan.
You buy at $50 and set a take-profit at $55: if the price gets there, you exit automatically with a $5 gain.
Understanding a term is good. Applying it on a real platform with a clear method is better. That is exactly what we do in 5 days.